IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i11p3226-d566603.html
   My bibliography  Save this article

The Effectiveness of Energy Cooperatives Operating on the Capacity Market

Author

Listed:
  • Jakub Jasiński

    (Institute of Rural and Agricultural Development, Polish Academy of Sciences, 72 Nowy Świat St., 00-330 Warsaw, Poland)

  • Mariusz Kozakiewicz

    (Collegium of Economic Analysis, Warsaw School of Economics, Madalińskiego 6/8 St., 02-513 Warsaw, Poland)

  • Maciej Sołtysik

    (Faculty of Electrical Engineering, Częstochowa University of Technology, Armii Krajowej St. 17, 42-200 Częstochowa, Poland)

Abstract

The European Green Deal aims to make Europe the world’s first climate-neutral continent by 2050 by shifting to a clean circular economy, combating biodiversity loss and reducing pollution levels. In Poland, whose economy invariably remains one of the most dependent on coal consumption in Europe, institutional responses to the above EU objectives have taken the shape of energy cooperatives aimed at filling the gaps in the development of the civic dimension of energy on a local scale and the use of potential renewable energy sources in rural areas, including in relation to the agricultural sector. This article is a continuation of the authors’ previous research work, which has so far focused on the analysis of the development of profitability of Polish institutions that fit into the European idea of a “local energy community”, which includes energy cooperatives. In this research paper, they present the results of subsequent research work and analyses performed on the basis of it which, on the one hand, complement the previously developed optimization model with variables concerning actual energy storage and, on the other hand, analyze the profitability of the operation of energy cooperatives in the conditions of the “capacity market”. The latter was actually introduced in Poland at the beginning of 2021. The research took account of the characteristics of energy producers and consumers in rural areas of Poland, the legally defined rules for the operation of the capacity market and the institutional conditions for the operation of energy cooperatives that can use the potential of energy storage. A dedicated mathematical model in mixed integer programming technology was used, enriched with respect to previous research, making it possible to optimize the operation of energy cooperative with the use of actual energy storage (batteries). Conclusions from the research and simulation show that the installation of energy storage only partially minimizes the volume of energy drawn from the grid in periods when fees related to the capacity market are in force (which should be avoided due to higher costs for consumers). The analysis also indicates that a key challenge is the proper parameterization of energy storage.

Suggested Citation

  • Jakub Jasiński & Mariusz Kozakiewicz & Maciej Sołtysik, 2021. "The Effectiveness of Energy Cooperatives Operating on the Capacity Market," Energies, MDPI, vol. 14(11), pages 1-20, May.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:11:p:3226-:d:566603
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/11/3226/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/14/11/3226/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chen, Pengzhan & Liu, Mengchao & Chen, Chuanxi & Shang, Xin, 2019. "A battery management strategy in microgrid for personalized customer requirements," Energy, Elsevier, vol. 189(C).
    2. Giorgos Stamtsis & Haris Doukas, 2018. "Cooperation or Localization in European Capacity Markets? A Coalitional Game over Graph Approach," Energies, MDPI, vol. 11(6), pages 1-17, June.
    3. Piotr Olczak & Dominik Kryzia & Dominika Matuszewska & Marta Kuta, 2021. "“My Electricity” Program Effectiveness Supporting the Development of PV Installation in Poland," Energies, MDPI, vol. 14(1), pages 1-16, January.
    4. Karol Tucki & Olga Orynycz & Andrzej Wasiak & Antoni Świć & Wojciech Dybaś, 2019. "Capacity Market Implementation in Poland: Analysis of a Survey on Consequences for the Electricity Market and for Energy Management," Energies, MDPI, vol. 12(5), pages 1-16, March.
    5. Karolina Mucha-Kuś & Maciej Sołtysik & Krzysztof Zamasz & Katarzyna Szczepańska-Woszczyna, 2021. "Coopetitive Nature of Energy Communities—The Energy Transition Context," Energies, MDPI, vol. 14(4), pages 1-13, February.
    6. Mateusz Andrychowicz, 2021. "RES and ES Integration in Combination with Distribution Grid Development Using MILP," Energies, MDPI, vol. 14(2), pages 1-19, January.
    7. Magdalena Wojcik-Jurkiewicz & Aleksandra Lubicz-Posochowska & Marzena Czarnecka & Grzegorz Kinelski & Beata Sadowska, 2021. "Legal Aspects of Sharing Economy: The Case of Games’ Platforms," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 1196-1210.
    8. Gitizadeh, Mohsen & Fakharzadegan, Hamid, 2014. "Battery capacity determination with respect to optimized energy dispatch schedule in grid-connected photovoltaic (PV) systems," Energy, Elsevier, vol. 65(C), pages 665-674.
    9. Mateusz Andrychowicz, 2020. "Comparison of the Use of Energy Storages and Energy Curtailment as an Addition to the Allocation of Renewable Energy in the Distribution System in Order to Minimize Development Costs," Energies, MDPI, vol. 13(14), pages 1-20, July.
    10. Emilio Ghiani & Andrea Giordano & Andrea Nieddu & Luca Rosetti & Fabrizio Pilo, 2019. "Planning of a Smart Local Energy Community: The Case of Berchidda Municipality (Italy)," Energies, MDPI, vol. 12(24), pages 1-14, December.
    11. Jakub Jasiński & Mariusz Kozakiewicz & Maciej Sołtysik, 2021. "Determinants of Energy Cooperatives’ Development in Rural Areas—Evidence from Poland," Energies, MDPI, vol. 14(2), pages 1-19, January.
    12. Henryk Majchrzak & Michał Kozioł, 2021. "Analysis of Various Options for Balancing Power Systems’ Peak Load," Energies, MDPI, vol. 14(2), pages 1-20, January.
    13. Bartosz Jeżyna & Marcin Lis & Agata Mesjasz-Lech, 2020. "The DSR Scheme in the Capacity Market of Industrial Enterprises in Poland—Participation Determinants," Energies, MDPI, vol. 13(20), pages 1-16, October.
    14. Jungsub Sim & Minsoo Kim & Dongjoo Kim & Hongseok Kim, 2021. "Cloud Energy Storage System Operation with Capacity P2P Transaction," Energies, MDPI, vol. 14(2), pages 1-13, January.
    15. Benjamin Matthiss & Arghavan Momenifarahani & Jann Binder, 2021. "Storage Placement and Sizing in a Distribution Grid with High PV Generation," Energies, MDPI, vol. 14(2), pages 1-10, January.
    16. Lowitzsch, J. & Hoicka, C.E. & van Tulder, F.J., 2020. "Renewable energy communities under the 2019 European Clean Energy Package – Governance model for the energy clusters of the future?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 122(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nicola Blasuttigh & Simone Negri & Alessandro Massi Pavan & Enrico Tironi, 2023. "Optimal Sizing and Environ-Economic Analysis of PV-BESS Systems for Jointly Acting Renewable Self-Consumers," Energies, MDPI, vol. 16(3), pages 1-25, January.
    2. Wojciech Czakon & Karolina Mucha-Kuś & Maciej Sołtysik, 2021. "Coopetitive Platform: Common Benefits in Electricity and Gas Distribution," Energies, MDPI, vol. 14(21), pages 1-18, November.
    3. Sylwester Kaczmarzewski & Piotr Olczak & Maciej Sołtysik, 2021. "The Impact of Electricity Consumption Profile in Underground Mines to Cooperate with RES," Energies, MDPI, vol. 14(18), pages 1-20, September.
    4. Zbigniew J. Makieła & Grzegorz Kinelski & Jakub Stęchły & Mariusz Raczek & Krzysztof Wrana & Janusz Michałek, 2022. "Tools for Network Smart City Management—The Case Study of Potential Possibility of Managing Energy and Associated Emissions in Metropolitan Areas," Energies, MDPI, vol. 15(7), pages 1-21, March.
    5. Anna Bartkowiak & Piotr Bartkowiak & Grzegorz Kinelski, 2022. "Efficiency of Shaping the Value Chain in the Area of the Use of Raw Materials in Agro-Biorefinery in Sustainable Development," Energies, MDPI, vol. 15(17), pages 1-16, August.
    6. Maciej Sołtysik & Mariusz Kozakiewicz & Jakub Jasiński, 2022. "Improvement of Operating Efficiency of Energy Cooperatives with the Use of “Crypto-Coin Mining”," Energies, MDPI, vol. 15(21), pages 1-25, October.
    7. Maciej Sołtysik & Karolina Mucha-Kuś & Jacek Kamiński, 2022. "The New Model of Energy Cluster Management and Functioning," Energies, MDPI, vol. 15(18), pages 1-18, September.
    8. Zbigniew J. Makieła & Magdalena M. Stuss & Karolina Mucha-Kuś & Grzegorz Kinelski & Marcin Budziński & Janusz Michałek, 2022. "Smart City 4.0: Sustainable Urban Development in the Metropolis GZM," Sustainability, MDPI, vol. 14(6), pages 1-19, March.
    9. Christoph Schick & Nikolai Klempp & Kai Hufendiek, 2021. "Impact of Network Charge Design in an Energy System with Large Penetration of Renewables and High Prosumer Shares," Energies, MDPI, vol. 14(21), pages 1-26, October.
    10. Emanuele Cutore & Alberto Fichera & Rosaria Volpe, 2023. "A Roadmap for the Design, Operation and Monitoring of Renewable Energy Communities in Italy," Sustainability, MDPI, vol. 15(10), pages 1-26, May.
    11. Marzena Czarnecka & Grzegorz Kinelski & Magdalena Stefańska & Mateusz Grzesiak & Borys Budka, 2022. "Social Media Engagement in Shaping Green Energy Business Models," Energies, MDPI, vol. 15(5), pages 1-19, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maciej Sołtysik & Karolina Mucha-Kuś & Jacek Kamiński, 2022. "The New Model of Energy Cluster Management and Functioning," Energies, MDPI, vol. 15(18), pages 1-18, September.
    2. Emanuele Cutore & Alberto Fichera & Rosaria Volpe, 2023. "A Roadmap for the Design, Operation and Monitoring of Renewable Energy Communities in Italy," Sustainability, MDPI, vol. 15(10), pages 1-26, May.
    3. Mateusz Andrychowicz, 2021. "The Impact of Energy Storage along with the Allocation of RES on the Reduction of Energy Costs Using MILP," Energies, MDPI, vol. 14(13), pages 1-15, June.
    4. Anna Bartkowiak & Piotr Bartkowiak & Grzegorz Kinelski, 2022. "Efficiency of Shaping the Value Chain in the Area of the Use of Raw Materials in Agro-Biorefinery in Sustainable Development," Energies, MDPI, vol. 15(17), pages 1-16, August.
    5. Backe, Stian & Zwickl-Bernhard, Sebastian & Schwabeneder, Daniel & Auer, Hans & Korpås, Magnus & Tomasgard, Asgeir, 2022. "Impact of energy communities on the European electricity and heating system decarbonization pathway: Comparing local and global flexibility responses," Applied Energy, Elsevier, vol. 323(C).
    6. Ryszard Kata & Rafał Pitera, 2023. "Local Authority Investments in the Field of Energy Transition and Their Determinants (on the Example of South-Eastern Poland)," Energies, MDPI, vol. 16(2), pages 1-20, January.
    7. Maciej Sołtysik & Mariusz Kozakiewicz & Jakub Jasiński, 2022. "Improvement of Operating Efficiency of Energy Cooperatives with the Use of “Crypto-Coin Mining”," Energies, MDPI, vol. 15(21), pages 1-25, October.
    8. Giuseppe Barone & Giovanni Brusco & Daniele Menniti & Anna Pinnarelli & Gaetano Polizzi & Nicola Sorrentino & Pasquale Vizza & Alessandro Burgio, 2020. "How Smart Metering and Smart Charging may Help a Local Energy Community in Collective Self-Consumption in Presence of Electric Vehicles," Energies, MDPI, vol. 13(16), pages 1-18, August.
    9. Krzysztof Zamasz & Radosław Kapłan & Przemysław Kaszyński & Piotr W. Saługa, 2020. "An Analysis of Support Mechanisms for New CHPs: The Case of Poland," Energies, MDPI, vol. 13(21), pages 1-18, October.
    10. Gianfranco Di Lorenzo & Erika Stracqualursi & Leonardo Micheli & Luigi Martirano & Rodolfo Araneo, 2022. "Challenges in Energy Communities: State of the Art and Future Perspectives," Energies, MDPI, vol. 15(19), pages 1-5, October.
    11. Marzena Czarnecka & Katarzyna Chudy–Laskowska & Grzegorz Kinelski & Grzegorz Lew & Beata Sadowska & Magdalena Wójcik-Jurkiewicz & Borys Budka, 2022. "Grants and Funding for the Processes of Decarbonization in the Scope of Sustainability Development—The Case from Poland," Energies, MDPI, vol. 15(20), pages 1-20, October.
    12. Bernadette Fina & Hans Auer, 2020. "Economic Viability of Renewable Energy Communities under the Framework of the Renewable Energy Directive Transposed to Austrian Law," Energies, MDPI, vol. 13(21), pages 1-31, November.
    13. Aleksandra Łakomiak, 2022. "Civic Energy in an Orchard Farm–Prosumer and Energy Cooperative—A New Approach to Electricity Generation," Energies, MDPI, vol. 15(19), pages 1-28, September.
    14. Wojciech Czakon & Karolina Mucha-Kuś & Maciej Sołtysik, 2021. "Coopetitive Platform: Common Benefits in Electricity and Gas Distribution," Energies, MDPI, vol. 14(21), pages 1-18, November.
    15. Josh Eichman & Marc Torrecillas Castelló & Cristina Corchero, 2022. "Reviewing and Exploring the Qualitative Impacts That Different Market and Regulatory Measures Can Have on Encouraging Energy Communities Based on Their Organizational Structure," Energies, MDPI, vol. 15(6), pages 1-19, March.
    16. Dalia Streimikiene & Tomas Baležentis & Artiom Volkov & Mangirdas Morkūnas & Agnė Žičkienė & Justas Streimikis, 2021. "Barriers and Drivers of Renewable Energy Penetration in Rural Areas," Energies, MDPI, vol. 14(20), pages 1-28, October.
    17. Jakub Jasiński & Mariusz Kozakiewicz & Maciej Sołtysik, 2021. "Determinants of Energy Cooperatives’ Development in Rural Areas—Evidence from Poland," Energies, MDPI, vol. 14(2), pages 1-19, January.
    18. Francesca Ceglia & Elisa Marrasso & Giovanna Pallotta & Carlo Roselli & Maurizio Sasso, 2022. "The State of the Art of Smart Energy Communities: A Systematic Review of Strengths and Limits," Energies, MDPI, vol. 15(9), pages 1-28, May.
    19. Bouthaina El Barkouki & Mohamed Laamim & Abdelilah Rochd & Jae-won Chang & Aboubakr Benazzouz & Mohammed Ouassaid & Moses Kang & Hakgeun Jeong, 2023. "An Economic Dispatch for a Shared Energy Storage System Using MILP Optimization: A Case Study of a Moroccan Microgrid," Energies, MDPI, vol. 16(12), pages 1-19, June.
    20. Przemysław Kaszyński & Aleksandra Komorowska & Krzysztof Zamasz & Grzegorz Kinelski & Jacek Kamiński, 2021. "Capacity Market and (the Lack of) New Investments: Evidence from Poland," Energies, MDPI, vol. 14(23), pages 1-17, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:14:y:2021:i:11:p:3226-:d:566603. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.